Climate Change Data

Environmental Metrics

Governance Achievements

• Reinstatement of quarterly dividend on August 12, 2021

Climate Goals & Targets

Environmental Challenges

• Global supply chain constraints
• Labor shortages
• COVID-19 pandemic impacts
• Fluctuations in oil and gas prices
• Uncertainty in government policies and regulations
• Potential changes to US domestic and foreign policy
• Credit and equity financing availability
• Risks associated with US expansion
• Raw material availability and pricing
• Disruptions to transportation networks

Mitigation Strategies

• Strategic investments in inventory
• Targeted pricing increases
• Working capital focus
• Attracting and retaining qualified personnel
• Competitive compensation
• Remote work tools and technologies
• Safe working environment
• Internal and external training programs
• Insurance policies
• Credit checks on customers
• Managing exposure to individual customers
• Reviewing credit procedures
• Insuring trade credit risks
• Proactive inventory procurement practices
• Maintaining prudent cost structure

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Floods, tornadoes, hurricanes

Transition Risks

• Regulatory changes, market shifts
• Changes to US trade and climate policies

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Labor and supply chain constraints
• Recession risk, rising interest rates and geopolitical instability
• Cost inflation in certain facets of the value chain
• Supply chain disruptions due to global pandemic and geopolitical events

Mitigation Strategies

• Prudent G&A levels and targeted pricing increases
• Strategic procurement process and pricing increases
• Proactive management of debt duration and flexibility
• Attracting well trained and experienced professionals; offering competitive compensation; providing tools and technologies to enable employees to work remotely; ensuring a safe working environment; offering internal and external training programs; maintaining insurance policies

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Floods, tornadoes, hurricanes

Transition Risks

• Regulatory changes, market shifts
• Government policies including environmental regulations

Reporting Standards

Frameworks Used: IFRS

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Fluctuations in the level and complexity of oil and gas exploration and development activity carried on by its clients.
• Seasonal drilling activity in Canada.
• Fluctuations in oil, natural gas, and natural gas liquids commodity prices.
• Pipeline takeaway capacity.
• Access to capital markets.
• Government policies (royalty, environmental, and industry regulations).
• Oil and natural gas demand fluctuations (impacted by global political, military, economic, and social factors).
• Labor and supply chain constraints.
• Crude oil pricing differentials versus world benchmarks.
• Uncertainty around the ability for WCSB producers to reach markets.
• Volatility in financial markets impacting credit and equity financing.
• Worldwide political and economic risks (conflict in Ukraine and the Middle East, tensions between China and the United States).
• Retreat in energy capital markets due to fluctuating commodity prices and ESG concerns.
• Reliance on Senior Facility to fund working capital and growth initiatives.
• Demand for skilled employees and limited supply of top quality, experienced talent.
• Potential disruptions to employees' ability to perform their duties due to unforeseen events.
• Inadequate insurance coverage or inability to maintain adequate insurance in the future.
• Concentration of credit risk in trade accounts receivable.
• Significant US presence exposing the Company to currency risk, regulatory risks, and increased regulatory requirements.
• Availability and supply of raw materials, supply chain issues and disruptions.
• Potential disruptions to transportation networks, impacts from pandemics, and shortages of transportation infrastructure.

Mitigation Strategies

• Volatility in activity at the drill-bit, fracturing and completion stages is somewhat muted by the long-term and less variable revenue generated at the pump-jack and wellhead during the production stage and in the mid-stream, pipeline and transportation phases.
• Growing facets of its business to increase the predictability of earnings.
• Attracting well-trained and experienced professionals, offering competitive compensation, providing tools and technologies for remote work, ensuring a safe working environment, and offering internal and external training programs.
• Maintaining insurance policies with respect to its operations.
• Performing credit checks, managing exposure to individual customers, reviewing credit procedures, reviewing and actively following up on older accounts, and insuring trade credit risks.
• Significant US presence providing upside potential and reducing certain risks through diversification of operations.
• Evaluating potential changes to customer activity levels and the potential impacts to our business.
• Monitoring interest rate trends and forecasted economic conditions.
• Monitoring exchange rate trends and forecasted economic conditions and using financial derivatives.
• Managing equity price risk through financial derivatives.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Floods, tornadoes, and hurricanes

Transition Risks

• Changes in government regulations restricting the use of hydraulic fracturing
• Impact of climate change policies

Reporting Standards

Frameworks Used: IFRS